Integrated Activity-Based Costing (ABC) fully integrates the Activity-Based Costing component (CO-OM-ABC) in the value flow of the Controlling component (CO), in particular the Product Cost Controlling component (CO-PC) and the Profitability Analysis component (CO-PA). Integrated ABC posts costs and quantities as real values, not statistical ones, to the participating objects.
Integrated ABC in Manufacturing Industries
Integrated ABC requires a radical rethinking of cost accounting as part of the overall managerial accounting strategy, with corresponding organizational restructuring requirements.
Activating an Integrated Activity-Based Costing
To activate integrated ABC in the Implementation Guide (IMG) for the Activity-Based Costing component, choose Controlling® Overhead Controlling ® Activity-Based Costing ® Activating Activity-Based Costing in Controlling Area. Select a controlling area and choose Activate components/control indicators. Set the Activity-Based Costing indicator to "Component active for parallel and integrated calculation".
For the Activity-Based Costing component, this means:
You must activate integrated ABC for each separate controlling area.
See also:Activity-Based Costing active in controlling area